Ad spending to grow 4.8% in '08

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NEW YORK -- Mature markets will see advertising spending grow 4.8% in 2008, the lowest quadrennial expansion since 1992, with possible further downside, investment bank UBS said Friday.

The firm said it sees its proprietary Advertising Key Global Indicator, which forecasts global advertising, at $454 billion for 2008. That would mean year-over-year gains of 6.7% driven by emerging markets and the Internet.

UBS forecasts advertising in those categories to expand 24% and 15%, respectively, accounting for 30% and 42%, respectively, of next year's global ad dollar growth.

The investment bank continues to expect ad spending to underperform GDP in mature markets in the long run. Among UBS' top media and entertainment stock picks is News Corp., while it sees risk for U.K. broadcaster ITV, among others.
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